Scottish milk inquiry

United Kingdom

The supply of fresh processed milk in Scotland is to be investigated by the Competition Commission. The DGFT has ordered the monopoly inquiry following the OFT's investigations into a complaint of market sharing, price discrimination, exclusive dealing and predation.

The Commission is being asked to establish whether a monopoly exists in the supply of fresh processed milk to “middle ground” customers - retailers other than large supermarket chains and, if so, whether it operates against the public interest. The supply to large supermarkets is not covered by the reference because that is considered to be a separate market and not subject to complaint.

Mr Bridgeman is asking the Competition Commission to make a detailed study of barriers to entry, such as high transport costs, in the market to help assess allegations of anti competitive behaviour made against Robert Wiseman Dairies Plc, the largest player, with a market share of over 70%.

(OFT Press Release 07/00)